A monopoly (from Greek μόνος, mónos, 'single, alone' and πωλεῖν, pōleîn, 'to sell') exists when

a specific person or enterprise is the only supplier of a particular commodity. This contrasts with
a monopsony which relates to a single entity's control of a market to purchase a good or service,
and with oligopoly which consists of a few sellers dominating a market.[1] Monopolies are thus
characterized by a lack of economic competition to produce the good or service, a lack of viable
substitute goods, and the possibility of a high monopoly price well above the seller's marginal
cost that leads to a high monopoly profit.[2] The verb monopolise or monopolize refers to the
process by which a company gains the ability to raise prices or exclude competitors. In
economics, a monopoly is a single seller. In law, a monopoly is a business entity that has
significant market power, that is, the power to charge overly high prices.[3] Although monopolies
may be big businesses, size is not a characteristic of a monopoly. A small business may still have
the power to raise prices in a small industry (or market).[3]

Competition law

Basic concepts

 History of competition law

 Monopoly
o Coercive monopoly
o Natural monopoly
 Barriers to entry
 Herfindahl–Hirschman Index
 Market concentration
 Market power
 SSNIP test
 Relevant market
 Merger control

Anti-competitive practices
 Monopolization
 Collusion
o Formation of cartels
o Price fixing
 o Bid rigging
 Product bundling and tying
 Refusal to deal
o Group boycott
o Essential facilities
 Exclusive dealing
 Dividing territories
 Conscious parallelism
 Predatory pricing
 Misuse of patents and copyrights

Enforcement authorities and organizations

 International Competition Network
 List of competition regulators

 v
 t
 e

A monopoly is distinguished from a monopsony, in which there is only one buyer of a product or
service; a monopoly may also have monopsony control of a sector of a market. Likewise, a
monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers
act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and
oligopolies are all situations in which one or a few entities have market power and therefore
interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that
distort the market.[citation needed]

Monopolies can be established by a government, form naturally, or form by integration. In many

jurisdictions, competition laws restrict monopolies due to government concerns over potential
adverse effects. Holding a dominant position or a monopoly in a market is often not illegal in
itself, however certain categories of behavior can be considered abusive and therefore incur legal
sanctions when business is dominant. A government-granted monopoly or legal monopoly, by
contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or
enrich a domestic interest group. Patents, copyrights, and trademarks are sometimes used as
examples of government-granted monopolies. The government may also reserve the venture for
itself, thus forming a government monopoly, for example with a state-owned company.[citation needed]

Monopolies may be naturally occurring due to limited competition because the industry is
resource intensive and requires substantial costs to operate (e.g., certain railroad systems).